Net profit percentage is the basic profitability ratio. It is the measure of net income percentage of a company to its net sales. It is a total profit/revenue left after all the expenses get deducted. The Net profit margin formula helps to find the percentage of revenue made in the end by dividing net profit by total revenue. The Net profit margin ratio formula is the best tool to compare the profitability of competitors who is blooming business in the same industry.
Net profit margin formula helps in measuring the overall success of the company. Net profit margin ratio formula is usually expressed as a percentage. Refer the online calculator link provided above for ease calculation.